MANILA – Consumer prices could rise by 4.6 to 5.4 percent in May due to higher prices of fuel and rice, the Bangko Sentral ng Pilipinas said.
The BSP Department of Economic Research’s forecast assumes an acceleration in inflation from 4.5 percent in April based on 2012 prices.
“Higher domestic petroleum prices amid geopolitical tensions in the Middle East as well as the sustained increase in rice prices present upward price pressures for the month,” the BSP said.
“These could be partly offset by lower electricity rates in Meralco-serviced areas along with lower prices of selected fruits and fish items as supply conditions normalized for the month,” it said.
The BSP will remain “watchful” of price trends to ensure that monetary policy is appropriate.
The Monetary Board last month raised its benchmark rate by 25 basis points for the first time since September 2014. (ABS-CBN News)
